State budget negotiations in Wisconsin broke down today after two conservative senators, Sen. Chris Kapenga and Sen. Steve Nass, publicly announced they would not support the budget as currently crafted by the GOP budget writing committee. Their opposition has stalled the process. In reality, Gov. Evers was not on board with the budget being crafted either, but for different reasons – they want less spending, he wants more.

The timeline for the state budget being completed is now uncertain.

Voters want spending cuts in Madison – or at least spending restraint. Our April poll found that 70% would support limiting state spending to inflation + population growth. Such reform was on track in Wisconsin back in the early 2000s until the blue waves of 2006 and 2008 flipped the Legislature to Democratic control.

The fiscal year ends June 30. Technically the state’s fiscal year ends June 30th. But in reality, state spending continues at current rates until a new budget is signed. In 2007, the budget wasn’t signed until October when it was Democratic Gov. Doyle negotiating with Republicans in the Assembly. The two-year budget eventually signed that year was for $57 billion. This year, the budget will likely end up over $100 billion. Evers’ proposed budget was for $120 billion.

The 2017 budget from Gov. Walker also went into the fall before final agreement was found with lawmakers.

No budget means no tax cuts. If an agreement on tax cuts can be found between lawmakers and Gov. Evers, a budget eventually must be signed to enact them.

IRG has long warned of runaway spending. Voters agree. Our recent polling shows:

• 70% of voters support limiting spending to inflation + population growth
• 59% favor freezing or cutting state spending

To advance significant tax cuts now or in the future like – flattening or eliminating the income tax – lawmakers will need spending discipline as well.

This is an opportunity for the Legislature to again take a look at wasteful spending and consider zero-based budgeting for state agencies, scrutinizing every dollar.

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